Africa’s hotel industry is exploding. What is causing it?

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By Bonface Orucho

New industry data suggests Africa’s hotel development momentum is increasingly shifting eastward. While North Africa still dominates the size of the continent’s pipeline, countries such as Kenya, Ethiopia, and Tanzania now host some of the highest shares of projects already under construction.

East Africa is emerging as the continent’s most dynamic hotel construction zone, signaling a new phase in Africa’s tourism and business travel expansion. While North Africa continues to dominate total investment volumes, the projects most actively progressing toward completion are increasingly concentrated in countries such as Kenya, Ethiopia and Tanzania.

The shift reflects growing investor confidence in East Africa’s tourism economies, aviation connectivity, and expanding conference markets. According to industry analysts, the region now hosts some of the highest shares of hotel projects already under construction anywhere on the continent.

New data released in the 2026 Hotel Chain Development Pipelines in Africa report by W Hospitality Group shows that Africa’s hotel development pipeline has reached a record 123,846 rooms across 675 hotels and resorts. The pipeline expanded by 18.6% year-on-year, underscoring continued investor interest in the continent’s hospitality sector.

According to sector analysts, the region is increasingly showing what a mature and connected hospitality market looks like in Africa.

“It has the aviation links, the conference traffic, the safari brand and the domestic business travel base to support new hotel stock. That combination is what investors look for,” according to Horace Kulundu, a Dodoma-based hospitality expert.

The data reveal a deeper structural shift within Africa’s tourism economy. While the overall scale of hotel investment remains dominated by a handful of North and West African markets, the pace at which projects are moving from planning to construction is now strongest in East Africa.

According to Trevor Ward, managing director of W Hospitality Group, Africa’s hotel development story is increasingly concentrated in a handful of high-performing countries. However, the execution momentum behind many of these projects is most visible in East Africa, where developers are moving quickly from signing deals to breaking ground.

In terms of scale, Egypt remains the dominant force in Africa’s hospitality pipeline. The country accounts for 45,984 rooms across 185 projects, representing more than a third of the continent’s total hotel development pipeline.

Egypt’s lead is significant. Its pipeline is more than four times larger than that of second-ranked Morocco, which has 10,606 rooms under development. Together, the two North African markets account for nearly half of all hotel rooms currently in development across the continent.

West Africa also maintains a strong presence in the rankings. Nigeria sits third with 8,480 pipeline rooms, reflecting continued investment in Africa’s largest economy despite periodic currency volatility and broader macroeconomic pressures.

Yet when analysts examine how many of these projects are actually advancing toward completion, East Africa stands out.

In Kenya, nearly 79.5% of pipeline hotel rooms are already under construction, according to the W Hospitality Group report. The country has 35 projects accounting for 6,190 rooms, placing it among the continent’s most active hotel development markets.

A similar pattern is visible in neighbouring Ethiopia. The country has 5,964 rooms in its hotel pipeline, with almost 80% currently under construction. Ethiopia’s capital, Addis Ababa, continues to strengthen its position as one of Africa’s most important diplomatic and conference hubs, hosting numerous international organisations and events.

Meanwhile, Tanzania has 4,159 rooms across 29 hotel projects, with roughly 77.5% already in the construction phase. Development is being driven by a combination of safari tourism, beach tourism along the Indian Ocean coast and the continued global popularity of destinations such as Zanzibar.

This concentration of construction activity suggests that many of Africa’s next hotel openings will occur in East Africa rather than the traditionally dominant tourism markets of North Africa.

“Midscale is where the numbers make sense,” Kulundu said. “Africa’s travel market is broadening, and the hotel sector is finally starting to build for that reality. The market is not just about the safari lodge or the five-star resort anymore. It is also about the urban traveller, the conference delegate and the regional business guest.”

Industry analysts also say this momentum reflects a combination of structural changes in the region’s tourism sector. International tourist arrivals to Africa have been recovering strongly following the pandemic, and several East African destinations have seen particularly robust growth in safari tourism, conference travel and regional business travel.

“After years of talking about Africa as the next big thing, we are now seeing a more selective, more practical kind of confidence,” Kulundu said. “Investors are focusing on cities and corridors where demand is visible, and the economics are clearer. That is why East Africa stands out; it offers a better mix of momentum and market logic.”

Governments across the region have also been investing heavily in aviation infrastructure and tourism promotion. Rwanda, for example, has built a reputation as a conference tourism destination centred around the Kigali Convention Centre, while Kenya continues to attract both safari travellers and international corporate events.

At the same time, global hotel chains are accelerating their African expansion strategies. Development activity across the continent remains highly concentrated among a small number of international operators.

According to the W Hospitality Group report, Marriott International leads Africa’s hotel pipeline with 31,782 rooms under development. The company is followed by Hilton and Accor, both of which have been aggressively expanding their footprints across African cities and tourism hubs.

“These are not isolated hotel projects,” Kulundu said. “They are part of a broader ecosystem, aviation, conference infrastructure, city branding, and destination marketing. Hotels follow confidence, and confidence follows visibility and connectivity.”

Together with IHG Hotels & Resorts and Radisson Hotel Group, these five global operators account for roughly 80% of all pipeline hotels across Africa.

Many of these hotel groups are also adapting their strategies for African markets. Instead of focusing exclusively on luxury resorts, developers are increasingly investing in midscale and lifestyle hotel brands that cater to business travellers, domestic tourism and regional visitors.

One example is the expansion plans announced by Choice Hotels International, which recently revealed plans to enter the African market through Kenya. The company intends to introduce several of its brands in the country, including Clarion and Quality Inn properties, targeting Nairobi’s growing business travel market.
“The company secured agreements for three hotels in Kenya and established a master development framework supporting future expansion across sub-Saharan Africa,” the company explained in a January statement.

Despite the optimism surrounding Africa’s hotel pipeline, industry analysts caution that not all announced projects ultimately reach completion. Africa’s hospitality sector has historically experienced a significant gap between planned developments and hotels that are eventually delivered.

The W Hospitality Group report estimates that more than 65,000 rooms are scheduled to open between 2026 and 2027. This includes 31,768 rooms expected to open in 2026 and 33,381 rooms projected for 2027.

However, historical trends suggest that actual delivery numbers often fall short of projections due to financing constraints, construction delays and regulatory hurdles.

“Even so, the scale of the pipeline underscores growing confidence among international investors in Africa’s tourism potential. The continent is increasingly being viewed as one of the world’s most promising frontiers for hospitality investment,” Kulundu noted.

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